Income Tax Act 2007 section 35

Personal allowance

Section 35 sets out the personal allowance available to individuals and explains how it is reduced for those with higher incomes.

• An individual who claims and meets the residency requirements is entitled to a personal allowance of £12,570 for a tax year.
• Where adjusted net income exceeds £100,000, the allowance is reduced by £1 for every £2 of income above that threshold.
• The personal allowance is fully withdrawn once adjusted net income reaches £125,140.
• Any remaining allowance after the reduction is rounded up to the nearest whole pound.